Chinese Dual-Class Shares Listed in Hong Kong and Mainland China
Title | Chinese Dual-Class Shares Listed in Hong Kong and Mainland China PDF eBook |
Author | Patrick Müller |
Publisher | diplom.de |
Pages | 122 |
Release | 2008-02-21 |
Genre | Business & Economics |
ISBN | 3836609967 |
Inhaltsangabe:Abstract: This paper aims at explaining the phenomenon of price anomalies between dual-class shares of companies located in mainland China (hereafter China). A-shares listed on either the Shanghai Stock Exchange (SHSE) or Shenzhen Stock Exchange (SZSE) command a premium over the price of the corresponding firm s H-shares traded at the Stock Exchange of Hong Kong (HKSE). This pricing puzzle arises from the segmentation of Chinese equity markets H-shares may be exclusively acquired by Hong Kong residents and international investors whereas A-shares are restricted to mainland Chinese investors. Although both classes of stock are entitled to the same future cash flows, investors are only willing to buy H-shares at a price significantly lower than that of A-shares. This unique setup offers the opportunity to test competing theories about the effects of market segmentation on asset pricing and to examine the factors that induce the price gap between cross-listed shares on different stock exchanges. Knowledge of the variables determining the price spread between H- and A-shares can make valuable contributions in a number of ways. Firstly, companies in mainland China pursuing initial public offerings (IPO) or seasoned equity offerings (SEO) may base their financing decision on a more thorough understanding of the parameters affecting stock prices of cross-listings in the respective markets. Secondly, policymakers in emerging country stock markets may draw conclusions concerning the design of foreign ownership regulation and investment restraints imposed on domestic and foreign investors. Lastly, international and local investors may build on a more profound understanding of the H- versus A-share discount (hereafter H-share discount) to narrow down attractive investment opportunity sets, especially in the light of the latest regulatory changes on the Chinese equity market. As of August 2007 the government body monitoring and regulating the national currency, China s State Administration of Foreign Exchange (SAFE), loosened its rigorous foreign exchange policy. Prior to the recent SAFE ruling, the annual amount to be freely converted from Chinese Yuan Renminbi (RMB) into foreign currencies was capped at a 50,000 United States Dollar (USD) limit. Under the new regime, mainland retail investors are granted unlimited convertibility of RMB into Hong Kong Dollar (HKD) given that investments flow into the Hong Kong securities market. In the [...]
Chinese Companies and the Hong Kong Stock Market
Title | Chinese Companies and the Hong Kong Stock Market PDF eBook |
Author | Flora Xiao Huang |
Publisher | Routledge |
Pages | 326 |
Release | 2013-10-30 |
Genre | Social Science |
ISBN | 1134671113 |
Listing by companies from one country on the stock market of another country is a device often used both to raise capital in, and to increase bonding with, the target country. This book examines the listing by Chinese companies on the Hong Kong stock market. It discusses the extent of the phenomenon, compares the two different regulatory regimes, and explores the motivations for the cross-listing. It argues that a key factor, in addition to raising capital and bonding with the Hong Kong market, is Chinese companies’ desire to encourage legal and regulatory reforms along Hong Kong lines in mainland China, in order to develop and open up China’s domestic capital markets.
A Guide to the Hong Kong and China Equity Markets
Title | A Guide to the Hong Kong and China Equity Markets PDF eBook |
Author | BNP Paribas Peregrine |
Publisher | |
Pages | 56 |
Release | 2003 |
Genre | Stock exchanges |
ISBN |
Changes in Regulation and Prices of Dual-listed Stocks in China
Title | Changes in Regulation and Prices of Dual-listed Stocks in China PDF eBook |
Author | Wing Him Yeung |
Publisher | |
Pages | 70 |
Release | 2007 |
Genre | Stock exchanges |
ISBN |
The share prices of a company listed on more than one stock exchange usually are in or close to equilibrium. Nevertheless, it has been observed the prices of the same Chinese company listed in China (A shares) and Hong Kong (H shares) are not anywhere close to equivalent. The article invesitgates whether the A and H share returns experience any co-movement, and whether changes in regulations have an impact on the correlations between the returns. Empirical results from this article show that the A and H shares only demonstrate very limited co-movement. In addition, the correlations between the returns are time-varying and are affected by changes in regulations by the Chinese government.
Founders without Limits
Title | Founders without Limits PDF eBook |
Author | Bobby V. Reddy |
Publisher | Cambridge University Press |
Pages | 487 |
Release | 2021-11-11 |
Genre | Law |
ISBN | 1108997112 |
Big Tech has flourished on the US public markets in recent years with numerous blue-chip IPOs, from Google and Facebook, to new kids on the block such as Snap, Zoom, and Airbnb. A key trend is the burgeoning use of dual-class stock. Dual-class stock enables founders to divest of equity and generate finance for growth through an IPO, without losing the control they desire to pursue their long-term, market-disrupting visions. Bobby Reddy scrutinises the global history of dual-class stock, evaluates the conceptual and empirical evidence on dual-class stock, and assesses the approach of the London Stock Exchange and ongoing UK regulatory reforms to dual-class stock. A policy roadmap is presented that optimally supports the adoption of dual-class stock while still protecting against its potential abuses, which will more effectively attract high-growth, innovative companies to the UK equity markets, boost the economy, and unleash the true potential of 'founders without limits'.
The Handbook of China's Financial System
Title | The Handbook of China's Financial System PDF eBook |
Author | Marlene Amstad |
Publisher | Princeton University Press |
Pages | 504 |
Release | 2020-11-17 |
Genre | Business & Economics |
ISBN | 0691205736 |
"The Chinese economy is now easily one of the most important and closely scrutinized economies in the world. Relatively minuscule changes in predictions of how the Chinese economy will perform can drive up or down stocks and the price of oil and other commodities. At the heart of how the Chinese economy works is its financial system-but the Chinese financial system is vastly different than most people in the West can understand. How do house prices work, for example, in a country where the very concept of property ownership is significantly different than our own? This edited volume will serve as a standard reference guide to China's financial system. With eighteen chapters, the handbook features overviews on the banking sector-the core of China's financial system and the key channel for implementing China's monetary policy-China's ongoing reforms, and the quickly growing bond and money markets, among other topics. Each chapter is written by a leading expert in the field, and as a whole the list of contributors represents an impressive mix of leading scholars and high-level policy officials, some with first-hand knowledge of setting and carrying out Chinese financial policy. The handbook will serve as the first real authoritative volume of literature in the field, and will shed extensive new light on the links between China's financial system and the real economy"--
Chinese Financial System, The: Sino-centricity And Orchestrated Control
Title | Chinese Financial System, The: Sino-centricity And Orchestrated Control PDF eBook |
Author | Dominique Jolly |
Publisher | World Scientific |
Pages | 252 |
Release | 2023-11-14 |
Genre | Business & Economics |
ISBN | 9811276277 |
With a strategic and geopolitical view on China's financial system, this book explores a number of roles that it plays in the world's second largest economy. The first key mission has been the financing of the domestic economy. The second one has been the financing of infrastructures (transportation, energy, and telecommunication) to offer companies a conducive environment to develop manufacturing facilities. Thirdly, it supports Chinese foreign investment. The final and most recent role is the active use of technology in finance and investment to collect big data.The book supports three theses. The first thesis argues that finance and investment are not only the product of market forces but also other dimensions like regulations, geopolitics, technology and internal governance. Another thesis is that the State Council is metaphorically the conductor, and financial and economic actors are the performers who must imperatively follow the conductor. Last but not least, the third thesis is that the sino-centric perspective adopted by the Chinese authorities impedes foreign entry. Contrary to industries opened to foreign companies, the Chinese government left ajar the door to banking industry — characterizing foreign banks as marginal actors in the system.